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FT Partners Advises on Sale of Instinet's Stake in Chi-X Europe

Overview of Transaction
  • On February 18, 2011, Instinet, a subsidiary of Nomura, announced the sale of its stake in Chi-X Europe to BATS Global Markets ("BATS"), as part of BATS' $305 mm(1) acquisition of Chi-X Europe
  • Instinet founded Chi-X Europe in 2007 and remains its largest shareholder
Significance of Transaction
  • Chi-X Europe is the second largest equity exchange by value traded on order book
  • Chi-X Europe has built a technology-enabled platform designed to help trading participants achieve ultra-low execution, clearing and settlement costs(2)
  • BATS Europe has 6.4% market share of pan-European securities
  • BATS and Chi-X Europe will be the largest pan-European trading center in terms of market share and notional value traded
  • The transaction represents a highly successful outcome for Instinet as the founder and developer of a premier technology-driven equity exchange
FT Partners' Role
  • FT Partners continued its long-term relationship with Instinet by serving as its sole strategic and financial advisor on the sale of its stake in Chi-X Europe, guiding Instinet through strategic alternatives and providing an analysis of bids and the envtual selection of BATS as a long-term partner
  • This is another transaction that demonstrates FT Partners' valued advisory services in regards to the most significant and complex M&A transactions in the Securities and Capital Markets Technology sector

(1) Per BATS' May 13, 2011 S-1 Filing
(2) Per Chi-X Europe January 24, 2011 press release, based on Q4-10 data